Dutch natural gas market price strengthens volumes lead over UK benchmark and Germany

Tuesday, 09 April 2019
Free Read

The Dutch Title Transfer Facility natural gas price has strengthened its position as the main continental European day-ahead and month-ahead gas trading instrument, widening its lead over the UK National Balancing Point price and with both prices followed in volume terms by German and Italian virtual hubs.

Natural gas trading through London in the popular European Dutch TTF, rose by 34.17 percent in March compared with a year ago while trading in the day-ahead UK benchmark NBP was down by 7.42 percent year-on-year.

The Dutch TTF and UK NBP prices are also the main indicators used when pricing Atlantic Basin LNG cargo trades.

Germany’s two day-ahead trading hubs were among the next three in volume terms, though separated by Italy, while the French PEG hub came sixth in the volumes list.

The Dutch TTF logged 2,723,912,634 megawatt hours of over-the-counter bilateral and cleared monthly trades, a rise of 12.61 percent over February 2019 and a 37.14 percent increase year-on-year from March 2018, according to the figures from the London Energy Brokers’ Association.

The London body is the industry association representing the UK Financial Conduct Authority-regulated wholesale market brokers in the OTC and exchange-traded European energy markets.

Figures also showed that the average day-ahead Dutch TTF price was 15.69 euros per megawatt hour ($5.17 per million British thermal units equivalent) in March 2019 versus 23.23 euros per MWh in March 2018, a price fall of 32.46 percent.

The UK NBP had 616,189,691 megawatt hours of bilateral and cleared OTC trades in March, a month-on-month rise of 17.17 percent, though the number was down 7.42 percent compared with March 2018.

The average NBP day-ahead price was 39.48 pence per therm ($5.15 per MMBtu) compared with 63.15 pence per therm in March 2018, a drop of 37.48 percent.

The other March OTC trading totals logged by London for European natural gas were:

NetConnect Germany (NCG) virtual trading point day-ahead volume 188,367,429 MWh; Italian Punto di Scambio Virtuale (PSV) 179,156,300 MWh; German Gaspool 120,795,08 MWh; France PEG 64,808,928 MWh; Austrian VTP 63,791,943 MWh; and Zeebrugge Hub 51,548,595 MWh.

The other European day-ahead gas hubs traded 26,502,029 MWh of contracts.

Related Video

Free Read